Accounting: Available Licenses and Certifications

Accounting practices build their success on experience,
education and compliance with regulatory requirements for
certifications in a chosen field of accounting. The licensing
process helps ensure that only qualified individuals are
authorized to serve the people. Licenses are checked and
verified by using the practitioner's name, or license number.
Below is a list of credentials for career advancement:

Certified Public Accountant(CPA): This is the most popular professional designation
for accountants, and requires "sitting" for the Uniform CPA
Exam, which is developed and graded by the American Institute of
Certified Public Accountants. The Uniform CPA Examination is one
of the "Four Es" - Education, Examination, Ethics and Experience
- required for licensure as a CPA. Consequently, passing the
examination is not, in itself, sufficient to meet requirements
for licensure. Requirements vary by jurisdiction, and are
described on the websites of all state Boards of Accountancy, A
directory of and links to all of the state boards can be found
on the website of the National Association of State Boards of
Accountancy (NASBA) .

Certified Management
Accountant(CMA) : This credential is
sponsored by the Institute of Management Accountants (IMA),
and is only offered to Institute members.

CMA certification results in salaries that are
competitive to those with a CPA. The role of management
accounting differs from that of public accounting, since
management accountants work at the "beginning" of the value
chain, supporting decision making, planning and control,
while audit and tax functions involve checking the work
after the fact. Management accountants are valued business
partners, directly supporting an organization's strategic
goals.

The CMA credential differs significantly from the CPA
designation, and the decision to pursue one over the other
depends entirely on individual career goals. For a career
in public accounting, the CPA designation is appropriate -
and required by state law. However, more than 80 percent of
accounting professionals in the United States work inside
organizations, building quality financial practices into
the organization. IMA's most recent salary survey indicates
that accountants with CMA certification earn 24 percent
more than those without certification.

Certified Financial Planner(CFP) assists clients in managing, sheltering and
expanding their assets through a comprehensive plan geared
toward a client's financial objectives and resources. CFP
candidates must pass the comprehensive CFP Certification
examination, pass CFP Board's Candidate Fitness
Standards, agree to abide by CFP Board's Code of
Ethics and Professional Responsibility which puts
clients' interests first, and comply with the Financial
Planning Practice Standards. These are just some of
the reasons why the CFP certification is becoming
increasingly recognized.

Certified Fraud Examiner(CFE) is widely recognized for expertise in the
anti-fraud field. Career opportunities abound and more are
growing.

Qualifications for certification are as follows:

Be an Associate Member of the
Association of Certified Fraud Examiners
(ACFE) in good standing;

Meet minimum academic and professional
requirements with a minimum of a bachelor's
degree or the equivalent, and at least two
additional years of professional
experience;

Be of high moral character;

Agree to abide by the Bylaws and Code of
Professional Ethics of the ACFE ; and

Pass the CFE exam.

Forensic Certified Public Accountant(FCPA) and fraud examination are different, but
related. Forensic accounting is done by accountants in
anticipation of litigation and can include fraud,
valuation, bankruptcy and a host of other services. Fraud
examination can be conducted by accountants or
non-accountants and refers only to antifraud matters. Thus,
the FCPA designation is for CPAs who want to differentiate
themselves as forensic specialists. Certification is
through the Forensic CPA Society.

Enrolled Agent(EA) is
recognized by the Internal Revenue Service (IRS) to
represent taxpayers before all administrative levels of the
IRS. Often called the best kept secret in accounting, EAs
provide an important and marketable service to the public,
government and accounting community. The EA recognition
signifies a concentration of competency in the field of
taxation.

The Licensing Process
Accountants face stringent compliance requirements when it comes
to accounting and auditing standards, the Tax Code and
Sarbanes-Oxley. But post-certification career paths are many and
varied. Maximizing accounting training is as simple as planning
ahead and making some good decisions.
Accounting certifications and professional designations are
required to step out into a specialty or independent practice.
Trying to understand how to comply with the complex
requirements, statutes, rules and regulations of the state
boards of accountancy can be difficult and time-consuming.

State Boards of Public
Accountancy Websites provide access to processes
needed to practice in that state or province, and links to
Board of Accountancy Websites are available on the NASBA
Website.

The Uniform Accountancy Act

While not a new document, the NASBA/AICPA Uniform Accountancy Act
(UAA) is constantly undergoing revision so as to keep pace with
the changing economic environment. The UAA contains provisions
that were agreed to by a majority of the state boards of
accountancy. As the name suggests, the act promotes uniformity
to protect the public interest and promote high professional
standards. Its purpose is to clarify a CPA's scope of practice
and to allow CPAs to work across state lines.
As more CPAs provide their services to the public through
nontraditional business entities, the law must be clarified for
the public to know what type of services will be subject to
government regulation.

In light of the collapse of Enron and other corporate
disasters, boards have expanded regulation and are partnering
with boards beyond their own borders, and in tandem with the
Public Company Accounting Oversight Board (PCAOB) and the
Securities Exchange Commission (SEC) to better protect the
public interest. A career in accounting will prove to be
financially rewarding whether one chooses to start as a CPA or
to work in private industry, government service or a nonprofit
entity. Earnings are a function of education, experience and
certifications.
Each field is continuing to evolve as technology improves and
the economic picture changes. Continuing education is the key to
keeping up with opportunities and regulation in a growing and
competitive industry.

American River Bank serves clients throughout Northern California, including Sacramento, Roseville, Santa Rosa, Healdsburg and Jackson (Greater Sacramento Area, Sonoma County, Amador County, San Francisco Bay Area - South Bay, North Bay, and East Bay).